Bitcoin Retreats After Buyers Fail to Reach 100K, but BTC Demand Remains High
Bitcoin approached within touch of the major 100K level last week, but buyers let go just below it, and today the price has retreated 5% lower, dipping below $95,000 a while ago.
About a year ago BTC/USD was trading around $65,000, where the buying momentum started and after a pause above $70,000, buying resumed after Donald Trump’s victory, which gave Bitcoin another push higher. However, the $100,000 level seemed a bit too intimidating for BTC buyers, and some profit-taking began to take place, so BTC started slipping lower, while today we saw a deeper retreat.
Bitcoin Chart H4 – Mas Continue to Act As Support
In the two weeks following the Republican victory in the U.S., Bitcoin surged by over 40%, fueled by renewed optimism in the cryptocurrency market. This boost was further amplified by the announcement of SEC Chair Gary Gensler’s retirement. Gensler, whose rigorous enforcement policies were widely criticized within the crypto industry, had been seen as a regulatory roadblock. His departure has lifted market sentiment significantly.
Record-Breaking BTC ETF Activity
Bitcoin’s rally coincided with a surge in exchange-traded fund (ETF) investments. U.S.-based Bitcoin ETFs now manage over $100 billion in assets, nearing the $120 billion held by gold ETFs. Last week alone, spot Bitcoin ETFs attracted $2.42 billion in inflows, marking the fourth-largest weekly gain since their January debut.
In contrast, China-based ETFs experienced unprecedented outflows of $2 billion, a historic high. This capital appears to have partially migrated into Bitcoin ETFs, further driving their growth. At the same time, “whales” in the crypto space accumulated an estimated $4 billion in Bitcoin over just four days, showcasing increasing institutional confidence in the asset.
Bitcoin’s New Highs and Market Hesitation
The surge in demand pushed Bitcoin’s price to a new peak of $99,800 on November 22. This milestone reinforced its appeal as a store of value amid ongoing global financial uncertainties. However, Bitcoin narrowly missed the symbolic $100,000 mark, peaking instead at $99,400 before sellers took control.
Despite another attempt by Asian markets, Bitcoin was unable to reclaim its weekend highs. As of now, it has stabilized around $95,115, reflecting cautious sentiment in the broader risk-on markets, including tech stocks.
Key Bitcoin Levels to Watch
The question now turns to where buyers might step in during the dip. The mid-November peak of $95,000 serves as an immediate support level, with $90,000 offering additional downside protection.
Conclusion
Bitcoin’s recent rally underscores its increasing appeal as a hedge against economic and political uncertainty. However, the market remains sensitive to liquidity fluctuations and broader risk sentiment. While the $100,000 milestone remains elusive for now, the sustained inflows into Bitcoin ETFs and institutional accumulation highlight robust confidence in the cryptocurrency’s long-term prospects. Investors should watch key support levels to gauge the next potential breakout.
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